Feds struggle with what to do with costly old, historic buildings
The government owns thousands of federally-owned, historic structures across the nation. Maintaining those buildings, however, presents costly problems as diverse as the structures themselves.
Some are being used by the federal government itself. Some are being rented out or sold to private organizations. Some are refurbished and structurally sound. Some are falling down in disrepair.
“Maintaining and making historic buildings functional for contemporary purposes in a constrained budget environment poses a challenge,” warns a report by the Government Accountability Office, Congress‘ watchdog agency.
Investigators looked at the General Services Administration, the National Parks Service and the Veterans Affairs Department. Historic buildings represent between 25 and 30 percent of the agencies’ land holdings.
The government owns roughly 400,000 structures, thousands of which are considered to be historic. The National Historic Preservation Act of 1966 created the National Register of historic buildings to help preserve America’s architectural heritage.
But government-owned historic buildings are tricky. Sometimes the demands of historic preservation hinder the needs of the federal agencies. Agencies are trying to decide which ones they can refurbish to meet their demands, and which ones they need to pass into other’s hands for safekeeping.
“When a federally owned historic building becomes underutilized because it no longer serves mission needs, agencies may sell a building or exchange it for comparable historic property so long as the exchange will ensure the preservation of the historic property,” the GAO said.
The agencies are taking a hard look at what to do with many of their historic structures. The government recently sold the historic Washington, D.C., Old Post Office building, completed in 1899. Business mogul and television personality Donald Trump bought it, and is planning to turn it into a hotel.
The VA is facing similar decisions. Many of its structures are historic hospitals, but the agency is finding they’re no longer suited to the needs of modern medical treatment for veterans.
Meanwhile, in 2011 the GSA reported that one-third of the 1,676 buildings it owns are more than 50 years old and most are eligible for inclusion on the National Register of historic places.
Federal departments have tried to put the buildings to good use, often sharing the space with state and local agencies, non-profits or private businesses. The GAO took a sample of 30 historic buildings, and found 20 buildings used by the federal government, five used partly by the government and partly by a non-federal organization, four that were being rented out to state and local governments or private businesses, and two that were vacant.
But if the government keeps the buildings, it presents its own set of problems. Maintenance costs can be high and unpredictable.
“Agencies’ total annual budgets allotted for historic preservation are difficult to determine because funding requested to implement projects to maintain, repair, rehabilitate, and modernize historic buildings is dispersed across multiple budget accounts,” the GAO cationed.